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What You �Need to Know �About Financial Aid

Missouri University of Science and Technology

National Association of Student �Financial Aid Administrators Presents …

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Topics We Will Discuss

What is financial aid?
Cost of attendance (COA)
Expected family contribution (EFC)
Financial need
Categories, types, and sources of financial aid
Free Application for Federal Student Aid (FAFSA^®)
Special circumstances

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What Is Financial Aid?

Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses

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Cost of attendance (COA) – Expected family contribution (EFC) = Financial need

What Is Financial Need?

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What Is Cost of Attendance (COA)?

Tuition and fees

Housing and food

Books and supplies

Transportation

Miscellaneous and personal

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Measurement of student’s and family’s ability to pay postsecondary educational expenses

Student contribution

Parent contribution

(for dependent students)

What Is Expected Family Contribution (EFC)?

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Cost of attendance (COA) – Expected family contribution (EFC) = Financial need

What Is Financial Need?

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Types of Financial Aid

Scholarships

Grants

Work-Study Employment

Loans

Gift Aid

Self-Help Aid

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Sources of Financial Aid

Federal Government

States

College and Universities

Private Sources

Employers

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Federal Government

Largest source of financial aid

Aid provided primarily �based on financial need

Must apply each year using the FAFSA

Eligibility requirements must be met

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States

Residency requirements usually apply

Aid may be provided based on �both merit and need

Use information from the FAFSA and/or state aid applications

State of Missouri’s priority FAFSA deadline is February 1st

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Colleges and Universities

Aid provided based on both merit and financial need

Aid may be gift aid or self-help aid

Use information from the FAFSA and/or institutional applications

Deadlines and application requirements vary by institution

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Private Sources

Foundations, businesses, churches, civic,�and charitable organizations

Deadlines and applications procedures vary

Begin researching private sources early

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Private Scholarships

Kohls, Dr. Pepper, Go Green, Zombie Apocalypse, Rodeo Team

Do searches for college freshman scholarships (read the fine print)

savingforcollege.com

scholarships.com

facebook scholarship app

scholarshipexperts.com

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Employers

May have scholarships available�to the children of employees

May have educational benefits for their employees

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Free Application for Federal Student Aid (FAFSA^®)

Collects demographic and financial information
Information used to calculate the expected family contribution (EFC)
Colleges use EFC to offer financial aid
Available in English and Spanish

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Free Application for Federal Student Aid (FAFSA^®)

May be filed at any time during an academic year, but no earlier than October 1^st prior to the academic year for which the student requests aid
For the 2023-24 academic year, the FAFSA may be filed beginning October 1, 2022
Colleges may set FAFSA priority dates

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Free Application for Federal Student Aid (FAFSA^®)

FAFSA on the Web (FOTW)

Paper or PDF FAFSA

FAFSA on the Phone (FOTP)

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Benefits of Using FOTW

Built-in edits to prevent costly errors
Skip-logic allows student and/or parent to skip unnecessary questions
Option to use Internal Revenue Service (IRS) Data Retrieval Tool to import tax data
More timely submission of original application and any necessary corrections
More detailed instructions and “help” for common questions
Ability to check application status online
Simplified application process in the future

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FAFSA on the Web (FOTW)

Website: https://StudentAid.gov/apply-for-aid/fafsa/filling-out

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FAFSA on the Web (FOTW)

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FSA ID

Used for FAFSA completion �and allows access to �certain U.S. Department �of Education websites
Student and parent must �create own FSA ID
May be used throughout �financial aid process, �including subsequent �school years
Only the owner should �create an FSA ID
Apply at https://studentaid.gov/fsa-id/create-account/launch

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IRS Data Retrieval Tool (DRT)

Allows for certain tax return information to be transferred from the IRS database
Participation is voluntary and student chooses whether to transfer data to FOTW
IRS will authenticate taxpayer’s identity
IRS transfers information to populate FAFSA income questions, for most tax filers
Reduces documents requested by financial aid office

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IRS Data Retrieval Tool

Certain tax filers cannot use the

IRS Data Retrieval Tool

Did not indicate on FAFSA a tax return was completed

Marriage date is January 2022, or later

First three digits of the SSN are 666

Filed a non-U.S. tax return

Married and filed as head of household, or filed separate returns

Neither married parent entered a valid SSN

Non-married parent or both married parents entered all zeroes for the SSN

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General Student Information

Social Security Number
Citizenship status
Marital status
Highest education level completed by father/mother

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Student Dependency Status

FAFSA asks questions to determine dependency status for Title IV federal student aid (not IRS) purposes:

If all “No” responses, student is dependent
If “Yes” to any question, student is independent

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Information About Student �(and Spouse)

Tax, income, and other financial information
Dislocated worker status
Receipt of means-tested federal benefits in the previous two years
Assets
Untaxed income

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Which Parent Should be Listed?

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Information About Parents of�Dependent Students

Tax, income, and other financial information
Dislocated worker status
Receipt of means-tested federal benefits in the previous two years
Assets
Untaxed income

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Additional Information

College information
Housing plans
FAFSA preparer information

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Signatures

Required

Student
One parent (if considered a dependent student)

Format for submitting signatures

Electronic using FSA ID
Signature page
Paper FAFSA

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Frequent FAFSA Errors

Social Security Numbers
Divorced/widowed/remarried parental information
Income earned by parent/stepparent
Untaxed income
U.S. income taxes paid
Asset and investment net worth
Household size
Number of household members in college

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Who Is Included in Household Size?

Dependent filers

Student and parent(s)
Student’s siblings and their children*
Parent’s unborn children*
Other persons who live in household*

Independent filers

Student and spouse (if married)
Student’s children*
Unborn children of student (and spouse)
Other persons who live in household*

* Included only if receiving more than half support between 7/1/23 to 6/30/24.

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FAFSA Processing Results

Student

CPS

College

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Email Notification of SAR Processing

If valid email address is provided on FAFSA
Provides access to electronic SAR

10/01/20XX

20XX-20XX

The SAR summarizes the information you submitted on you 20XX-20XX Free Application for Federal Student Aid (FAFSA).

Based on your EFC of 3157, you may be eligible to receive a Federal Pell Grant of up to $3,195 for the 20XX-20XX school year provided you have not met or exceeded the lifetime limit established for the Federal Pell Grant program.

Form Approved

OMB No. 1845-0001

App. Exp. 12/31/20XX

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SAR or SAR Acknowledgement

SAR sent if paper FAFSA filed without providing an email address
SAR Acknowledgement sent if FOTW filed without providing an email address

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Special Circumstances

Conditions exist that cannot be documented with the FAFSA
Send written explanation and documentation to your college’s financial aid office
College will review and request additional information if necessary
Decisions are final and cannot be appealed to U.S. Department of Education

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Special Circumstances

Secondary school tuition

Unusual uncovered medical/dental expenses

Extraordinary dependent care

Loss of employment or income

Divorce

Parent or spouse death

Student cannot obtain parental information

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dhewd.mo.gov studentaid.ed.gov�